The supply and retail of agro inputs, including high-yielding seed for crop production, has been growing throughout Ghana in recent years. In response to greater market demand and price appreciation, the number of suppliers and retailers has increased from a very few well-known companies to thousands of agro-chemical retailers nationwide. Small and medium-scale dealers in the industry have made great efforts to improve on techniques, delivery methods, and schedules to better serve the growing market. Others have gone into seed production to bridge the supply/demand gap.
A number of dealers are also investing in warehouse infrastructure to stockpile agro-inputs for distribution at the start of farming season. Warehouse capacity in the Upper West Region is at a premium, and prices for soya, maize, and rice are very volatile. Prices are at their lowest around harvest time but tend to rise dramatically later in the year due to lack of storage. While most producers in the region sell crops immediately once harvested to garner desperately needed cash flow, companies with access to even a modicum of warehouse facilities can benefit tremendously by holding on to stocks for a few weeks or months after the main harvest period, when prices often increase dramatically.
Given the regional market dynamics, the Upper West Region provides a fertile opportunity for investors who seek an early mover advantage to a fast-growing market for agricultural commodities. Antika Company, Ltd. has been observing increasing demand for agro-inputs and improved seed for maize, rice, and soy over the past few years. Antika looks to expand its seed production and warehousing facilities to stockpile farm produce and agro-inputs for distribution to farmers and processors at the right time and in the right quantities. A warehouse would help Antika meet the needs of farmers and improve its profitability.
Antika is a vertically integrated agribusiness located in Wa, Upper West Region. The company began operations in 2004 and has since distinguished itself as a leading company in the region through sale of agro-inputs, provision of haulage and agricultural mechanization services, and production and aggregation of maize, rice, soya, and other crops. The company serves a network of 9,000 farmers and 40 agro- chemical input dealers.
Antika is seeking $450,000 in long-term financing to construct a 10,000 MT capacity seed warehouse, and acquire a seed processing plant and irrigation equipment to expand its existing five-acre farmland under irrigation. The company is open to both equity and debt solutions.
Nunyuie Brothers Ltd., a BAS provider in the USAID- FinGAP network, is helping Antika review its operations and develop a business plan in order to access funds to finance its agribusiness opportunities.
Warehouse construction will not involve cutting down forest because the site is already developed farmland. It will not accelerate erosion, as the soil is well drained and there are gutters. The seed processing equipment will not cause significant noise.
Numerous initiatives in the business environment create a conducive environment for the investment, including: GGC is a private sector-led initiative that seeks to promote development.
- NRGP, funded by ADB / IFAD and GoG
- USAID-ADVANCE II
- FBOs under MoFA
Abdulai Antiku Seidu, Managing Director, +233 20 809 2285, email@example.com